Compensation or indemnity for loss owing
to breach of contract, or a tort (civil
wrong).
Example of
Damages - Leases
If Landlord breaches any covenants,
Tenant may sue for provable loss resulting
from the breach. In rare circumstances, a
breach by a landlord will give the tenant
rights other than to damages.
If Tenant vacates possession, the rent
must still be paid until proper termination
of the lease occurs. The tenant agreed to
pay a rental amount and is liable for that
amount. The landlord can sue for damages for
any loss resulting from the tenant’s failure
to pay rent as agreed. That loss may include
the unpaid rent, any deficiency in monies
received from a new tenant, and the cost of
re-renting, including legal fees and leasing
agent commission.
Example
of Damages
- Agency Agreement
ABC Realty Inc. may be liable to Seller
for damages involving negligence or breach
of duty (e.g., incompetence). Seller Smith
would have a claim against the brokerage who
committed the wrongful act that caused
damage to the principal. Since a loss can
involve a reduction in property value,
carrying costs, legal fees and interest, the
amount can be substantial.
Example of
Damages
- Contract
Seller refuses to close a sale after a
binding agreement was entered into with
Buyer. Assuming this situation proceeds to
litigation, the court will probably assess
the measure of damages as the amount that
may fairly and reasonably be considered
either arising naturally (according to the
usual course of things) from the breach, or
such as may be reasonably supposed to have
been contemplated by the parties at the time
they made the contract.
In other
words, Buyer may
incur direct damages for expenses related to
finding other accommodation. However,
Buyer may also
have had unique plans for the property:
e.g., partial use for a new business
enterprise. His inability to establish the
business, as a consequence of
the breach, may factor into a final
assessment of damages. As with all court
cases, the awarding of damages or the extent
of an award varies on the merits of the
case.
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